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UA employees shocked: (qtrly performance) Bonuses replaced with lottery (on "pause")

UA employees shocked: (qtrly performance) Bonuses replaced with lottery (on "pause")

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Old Mar 5, 18, 5:08 am   -   Wikipost
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Update 5 March 2018 per Chicago Tribune (and confirmed by internal employee memo
United walks back new bonus lottery system that angered employees
United Airlines on Monday reversed plans to begin awarding bonuses through a lottery system that angered employees.

Scott Kirby, president of the Chicago-based airline, said United was “pressing the pause button” on changes that would have handed out larger bonuses to only a fraction of its workers after hearing employees’ feedback since announcing the changes late last week.

Per Chicago Business Journal, 2 March 2018
​​​​​​​United Airlines employees shocked: Bonuses replaced with lottery

United Airlines President Scott Kirby sent shock waves through the employee ranks at the Chicago-based airline today.

Kirby issued an employee memo in which he announced that the Chicago-based airline is dropping the quarterly performance bonuses the carrier had been giving out to all employees qualified to receive them.

Kirby said in the memo, obtained by the Chicago Business Journal, that the bonus payouts are being replaced with a new program called "core4 Score Rewards," which Kirby said would include quarterly prizes like cash ranging from $2,000 to $40,000, luxury cars, vacation packages, and a grand of prize of $100,000 awarded to one eligible employee per quarter.
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Old Mar 3, 18, 7:05 am
  #61  
 
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Originally Posted by claaaaaydavis View Post
McKinsey sure did a bang up job with this and the Gemini algorithm.
This absolutely reeks of idiotic consultant advice.
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Old Mar 3, 18, 7:20 am
  #62  
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Originally Posted by EWR764 View Post
I don’t really like the sound of this program
It's like something you'd read in the Onion. Except it is apparently for real. Unfreakin believable that a Fortune 500 would implement a scheme like this.
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Old Mar 3, 18, 9:00 am
  #63  
 
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Originally Posted by jp12687 View Post


United didn’t like how those negotiations went and this is how they show their displeasure

UA has had contentious relationships with their unions for more than 50 years. With the FAs, it started in the late 60s, when they filed a large class action suit against UA for wrongful termination ...and won, costing UA tens of millions in compensation. Downhill ever since.
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Old Mar 3, 18, 9:04 am
  #64  
 
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This distresses me a lot. Think about the tax (and other) implications for the poor low-paid employee "winner" who now has this windfall. I hate everything about it.
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Old Mar 3, 18, 9:17 am
  #65  
 
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How likely is it that United will rollback this announcement after receiving feedback? I feel so bad for the staff.
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Old Mar 3, 18, 9:37 am
  #66  
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Originally Posted by Melodsal View Post
How likely is it that United will rollback this announcement after receiving feedback? I feel so bad for the staff.
if it doesn’t work, 100%.
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Old Mar 3, 18, 9:44 am
  #67  
 
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I don't really care how they choose to compensate their employees as long I still receive great service. Isn't that what really matters?
If my level of service suffers due to this new program, then I will complain that it did not work.
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Old Mar 3, 18, 10:02 am
  #68  
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Pretty clearly just a cost-cutting measure.
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Old Mar 3, 18, 10:39 am
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Originally Posted by LIH View Post
Pretty clearly just a cost-cutting measure.
Yeah, Matthew estimates savings of $8M per quarter. Some good details here: United Airlines Inflames Employees With Bonus Cutbacks - Live and Let's Fly
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Old Mar 3, 18, 11:05 am
  #70  
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Originally Posted by fly18725 View Post
Yeah, Matthew estimates savings of $8M per quarter. Some good details here: United Airlines Inflames Employees With Bonus Cutbacks - Live and Let's Fly
Matthew is right.

​​​​​​Folks, I’m not making this up. It seems that Kirby has been listening to Kenneth Copeland or Creflo Dollar too much lately…I’ve heard from many gate agents and FAs about this today…all are angry and feel betrayed. And unfortunately, that means customers will likely feel the brunt of this disappointment and sense of betrayal at airports and in the air.
This is continuing evidence that the UA BoD are a group of useful idiots who blindly rubber stamp everything Kirby does. Any good will Oscar has garnered in replacing SMI/J has now been squandered.
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Old Mar 3, 18, 11:13 am
  #71  
 
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Originally Posted by jp12687 View Post


United didn’t like how those negotiations went and this is how they show their displeasure

this will make service even worse.
I think it's fair to say there are some inside the company (and possibly a few on the board) who thought the prior regime's labor strategy would have bourne fruit given more time, and that Oscar therefore prematurely capitulated to outsized deals. The real question is whether Kirby would have been, or is, in that camp of thought.
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Old Mar 3, 18, 11:14 am
  #72  
 
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Forced lottery

At the most basic level, this program is equivalent to giving everyone a bonus, but then forcing everyone to buy a lottery ticket with it. It's economically suboptimal because few people would choose to spend their bonus money this way.
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Old Mar 3, 18, 11:17 am
  #73  
 
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The UA employee intranet page announcing the "change you will like" announcement for the lottery was hit with 900 (so far...) negative comments from employees. They were addressed (so they think) by a three-part reply by:

Anthony Scattone
VP Total Rewards

There is a Vice President position: "VP Total Rewards"???
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Old Mar 3, 18, 11:21 am
  #74  
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Originally Posted by halls120 View Post
This is continuing evidence that the UA BoD are a group of useful idiots
Useful? I hope that's a typo...
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Old Mar 3, 18, 11:26 am
  #75  
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Anthony Scattone
VP Total Rewards

There is a Vice President position: "VP Total Rewards"???Ironically, "Total Rewards" is the name for Caesar's/Harrah's Entertainment's Gaming Loyalty Program. How coincidental...
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